If a price reduction leads to an increase in total revenue,demand is _____
A)perfectly inelastic.
B)inelastic.
C)unit elastic.
D)elastic.
E)perfectly elastic.

Name: If a price reduction leads to an increase in total revenue,demand is _____ A)perfectly inelastic. B)inelastic. C)unit elastic. D)elastic. E)perfectly elastic.
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Question

Quizplus · Accepted Answer

A price reduction leading to an increase in total revenue signifies that demand is sensitive to a change in price, which is the definition of elastic demand.

If a Price Reduction Leads to an Increase in Total